Tag Archives: Employee and Wage

Employee and Wage: Through Islamic Perspective (part 1)

Employee and Wage Through Islamic Perspective

Employee and Wage: Through Islamic Perspective (part 1)

Author: Prof. Muhammad

(Chairman of Sekolah Tinggi Ekonomi Islam (STEI)Yogyakarta)

Islam has a distinct perspective regarding employment which contains at least four principles to honor the employee or worker’s rights, including the wage distribution system.

Worker and his wage is something inseparable. Both has always became interesting topic to discuss about; even the labor strike also mostly about their demand to get a raising in salary. My article this time will be discussing about these two important topics. Important, I say, because policy in the minimum wage sector has became a part of a wider agenda of reformation of employment. This policy arises after the economic crisis in 1997/1998; also, in Indonesia, through the government’s commitment regarding the minimum wage of the worker.
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Employee and Wage: From Islamic Perspective (part 3 – finished)

Employee and Wage

Author: Prof. Muhammad
(Chairman of Sekolah Tinggi Ekonomi Islam (STEI)Yogyakarta)

Minimum Standard of Wage >_ Nishob of Zakat

In practical level, although the minimum wage has been measured thoroughly by taking into measure components of food, clothes, and housing as stated in a letter issued by Minister of Employment and Transmigration No. 889 HK. 01.32.2002, it is still short to cover the basic needs of employee, particularly in developing countries. The provincial minimum wage (Upah Minimum Provinsi or UMP) of DKI Jakarta in year 2000 was IDR 972.604,00 monthly (or equal to 71 euro), increase by 8% from the 2007 UMP of IDR 900.560,00. Compare it to the employee’s wage in Europe in 2004; In belgium, 1.210 euro, France 1.280 euro, and Netherlands 1.264 euro. The minimum wage in these three countries in 2004 was 17 times higher than the minimum wage of employee in Jakarta in 2008.
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